There was no respite for equities in India as trading began on Friday in the background of a US market plunge Thursday as oil hit a record and stock in Asia tumbled early in the day.
Also weighing on investor sentiment was the 50 basis points hike in the PLR rates by State Bank of India and Union Bank earlier day and inflation, which was expected to have risen to a fresh 13-year high of 11.18 per cent.
Political stability was also under question with Congress President Sonia Gandhi reportedly giving the go-ahead to Prime Minister Manmohan Singh on the nuclear deal at the cost of losing the government at the centre.
But the biggest factor was crude touching a new high of $140.39 per barrel in the international market after OPEC chief Chakib Khelil warned oil may go up to $170.
“Our market woke to more than a couple of negative news flows. In addition to surging oil price, factors like expectation of higher inflation figures, weak global market and reports of UPA allies parting ways kept the market nervous,” said Anita Gandhi, institutional head at Arihant Capital Market.
Benchmarks fell around 3.5 per cent soon after trade began. Even as the market tried to brave high inflation, which came in at 11.42 per cent for the week ended June 14 against 11.05 per cent in the previous week, surge in oil prices painted the global markets in red.
Brent North Sea crude touched an all-time high of $141.98 per barrel.
Bombay Stock Exchange’s Sensex closed at 13,802.22, down 619.60 points or 4.30 per cent. The 30-share index touched a low of 13,760.24 falling short of 29 points from its 52-week low.
Friday, June 27, 2008
Sensex tumbles on high oil prices and inflation peaks
Posted by Dinesh at 6:29 PM 0 comments
Labels: Indian Stocks
Tuesday, June 3, 2008
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